It sounds like the scholarships are somehow being included with her other self-employment income rather and taxed as such, rather than being classified as taxable scholarships.
Please have her remove the income from "other income" and then go to Deductions & Credits and then Education. Under Education she should select "Expenses and Scholarhips" and follow the prompts. She should not enter the expenses here (just click through most of those initial screens) and near the end she will have the option to enter scholarships.
This will tell the program to treat them properly and they will show on the tax return as "other income" with the designation SCH beside it when printed for review.
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